Payroll systems which store sensitive employee data including Tax File Numbers and personal address are particularly attractive to hackers. Media reports of attacks and the exposure of personal information have now become almost commonplace.
Payroll systems which store sensitive employee data including Tax File Numbers and personal addresses are particularly attractive to hackers. Media reports of attacks and the exposure of personal information have now become almost commonplace.
So it’s no surprise that when it comes to evaluating payroll management systems, data protection and security are two top concerns for businesses, which is why many businesses still stick with on premise payroll software, believing sensitive data is less at risk on the company’s own servers than on Internet accessible cloud servers.
But this perception that cloud-stored employee data is less secure is changing as the adoption of cloud payroll systems gathers pace.
Cloud systems can offer additional levels of external security and support not found through traditional payroll systems, including regular security audits, staff dedicated to monitoring threats, guarded protection of physical servers.
These systems can be accessed by multiple people on a variety of devices from anywhere the Internet is available. Universal access makes the payroll administration process more efficient, but it underscores the importance of employee training and the need to verify the identities of any person accessing the system remotely.
Duo security, a two-factor authentication service recommends some simple ways businesses can incorporate to ensure employee data stays secure:
STRONG PASSWORDS. Login credentials should follow best practices. Passwords should be longer than seven digits, and include numbers, letters and/or special characters.
PASSWORD STORAGE. It’s worth stating that passwords should not be written down in plain sight. If memorisation isn’t an option, consider tools like an online password vault or keychain.
EARLY DETECTION. Employees should be schooled about the telltale signs of suspect emails, and employees should never offer up payroll credentials into a form or website linked in an email.
There are a number of companies that offer cloud-based payroll service that adhere to these security protocols.
Sage MicrOpay for example enables easy access to secure, scalable and reliable employee data from anywhere with an internet connection through a secure remote connection that is restricted to authorised users only.
Sage’s payroll software is also fully compliant whenever legislative changes occur and can easily be adapted to meet business requirements across all industries.
In conclusion, data security is a two-way street that requires providers to do their part by investing in encryption, SSL technology and security monitoring and, at the same time, encouraging users to implement best practices to be sure the systems are used in the most secure way possible.
For more information on how a cloud-based payroll service can help your business, download the FREE white paper: How software solutions remove risk & increase compliance here.